Cypher Protocol Hit by $1 Million Attack; Freezes Smart Contract

• The group has also reached out to the hacker to discuss the possible recovery.
• Hours after the issue was discovered, the purported wallet sent $30,000 USDC.

A $1 million estimated attack caused Solana-based Cypher Protocol, a decentralized futures exchange, to suspend its smart contract. On August 7th, Cypher tweeted its users to let them know that the platform had encountered a security breach and had temporarily disabled its smart contract.

The group has also reached out to the hacker to discuss the possible restitution of stolen monies and is determining the root cause of the vulnerability. Data from the Solana blockchain explorer Solscan suggests that the wallet associated with the vulnerability took about 38,530 SOL tokens and $123,184 USDC, for a grand total of $1,035,203.

Hours after the issue was discovered, the purported wallet sent $30,000 USDC to the Solana USDC address “kiing.sol” on the cryptocurrency exchange Binance, suggesting an effort to withdraw the stolen assets.

Not Successful in Making Contact Yet

Since the vulnerability was discovered, many NFTs have been sent to the wallet, pleading for their recovery. Also, the suspected hacker has not yet transferred any assets based on Solana to the Ethereum network as of the time of publishing.

Moreover, the assault occurred amid Cypher Protocol and Solana protocol Marginfi hosted the mtnDAO hacker house event. In a message sent out over Telegram, Marginfi said that it is operating independently of Cypher and is unaffected by the cyberattack.

Unfortunately, the Cypher team has not been successful in making contact with the hacker. The Team has provided a list of possible ways to get in touch with the perpetrator in their most recent update. CMC reports that the current price of SOL is $23.17, reflecting a gain of 0.14% over the last 24 hours.

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